COMMERCE 2BC3 Study Guide - Midterm Guide: Strategic Choice, Costco, Hubspot
25 Jun 2018
School
Department
Course
Professor
Strategic Management
PPE, geographic location
○
Physical
1.
The structure, planning, controlling, and coordinating systems, and group relations
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Organizational
2.
Experience, skill, and intelligence of employees
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Human
3.
Organizations compete with resources and the goal is to deploy and allocate resources to gain a competitive advantage:
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Input into strategic plan
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Specific knowledge of organization’s goals
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Know what skills, attitudes and behaviors are needed from employees
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Develop programs to ensure employees have those skills
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The HRM function must be integrated into the strategic management process, such that HR managers should have:
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Business Model
Fixed costs -costs incurred regardless of number of units produced
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Variable costs -vary with units produced
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Contribution margin -Selling price - variable costs. It covers fixed costs then goes towards profit
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Gross margin -Number of units sold * contribution margin
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Is a story of how the firm will create value for customers profitably. Some terms:
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What is Strategic Management?
Process of analyzing a company’s competitive situation, developing the company’s strategic goals, and devising a plan of
action and allocation of resources (human, organizational, physical) that will increase the likelihood of achieving these
goals
•
An approach for creating and managing a pattern or plan that integrates an organization's major goals, polices and
actions into a cohesive whole
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General strategy component fitting a strategic plan (cost, defender, reactor, etc.) and secondary strategy component to
achieve goals in light of the current environment (scaring competitors, deciding which technology to use, etc.)
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Some poor strategies: New Coke, JC Penny, Myspace, NASA
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Strategic HRM
The pattern of planned HR deployments and activities intended to enable an organization to achieve its goals
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Integration of HRM systems to the overall mission, strategy, and success of the firm
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When all elements of organization (structure, people, technology, etc.) are aligned to give organization a
competitive advantage
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High performance work system
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Know the organization’s goals
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Have input into the strategic plan –e.g. ability of workforce to implement particular strategies
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Know what employee skills, attitudes, and behaviors are needed to support strategic plan
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Develop programs to ensure employees have these skills, attitudes, behaviours
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There are 4 necessary conditions to achieve strategic HRM
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Implement just-in-time inventory control to reduce inventory costs
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Total Quality Management –Six Sigma
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Strategic Decision
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What knowledge/skills are needed in our workforce to implement and maintain JIT system? And Total Quality
Management?
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Where / how will we get these skills ?
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Key consideration re: Strategic HRM
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Components of Strategic Management - 2 distinct, interdependent phases
Decide on strategic direction by defining mission and goals, and generating various alternatives and evaluating
them
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Strategy Formulation
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Strategic HR
Human Resources Management and Labour Relations Page 1
them
Following through on the chosen strategy by restructuring, allocating resources, and developing reward systems
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Strategy Implementation
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Strategic Management Process Model
Where to compete? In what market(s) will we compete in?
1.
How to compete? On what differentiating characteristics will we compete?
2.
With what will we compete? What resources will allow us to beat our competitors and how will we acquire,
develop, and deploy them?
3.
Linking HRM and Strategic Management
Strategic Linkages
Administrative - lowest level, focused on day-to-day activities, no connection between HRM department and the strategic
business planning function
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One-way - strategic planning function develops strategic plan then informs HRM function of the plan, recognizes
importance of HR but precludes company from considering HR while formulating the strategic plan, leading to
unsuccessful strategic plans
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Planning team informs HRM function of various strategies being considered
1.
HRM executives analyze and present the analysis back to the planning team
2.
When the decision is made the plan is passed to the HRM executive who develops programs to implement it
3.
Two-way - consideration of HR during strategy formulation with integration in 3 sequential steps:
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Integrative - not sequential but continuing, where HRM executive is part of the management team and the HRM function
is built into the strategy formulation process
•
Human Resources Management and Labour Relations Page 2
Document Summary
Organizations compete with resources and the goal is to deploy and allocate resources to gain a competitive advantage: The structure, planning, controlling, and coordinating systems, and group relations. The hrm function must be integrated into the strategic management process, such that hr managers should have: Know what skills, attitudes and behaviors are needed from employees. Develop programs to ensure employees have those skills. Is a story of how the firm will create value for customers profitably. Fixed costs - costs incurred regardless of number of units produced. Contribution margin - selling price - variable costs. It covers fixed costs then goes towards profit. Gross margin - number of units sold * contribution margin. Pro(cid:272)ess of a(cid:374)alyzi(cid:374)g a (cid:272)o(cid:373)pa(cid:374)y"s (cid:272)o(cid:373)petiti(cid:448)e situatio(cid:374), de(cid:448)elopi(cid:374)g the (cid:272)o(cid:373)pa(cid:374)y"s strategi(cid:272) goals, a(cid:374)d de(cid:448)isi(cid:374)g a pla(cid:374) of action and allocation of resources (human, organizational, physical) that will increase the likelihood of achieving these goals.
